BBVA Compass reports fourth quarter results

February 01, 2018

HOUSTON, Feb. 1, 2018 /PRNewswire/ --

  • Quarterly net income totals $52 million; includes $121 million non-cash charge related to the revaluation of net deferred tax assets
    • Adjusted net income1 totals $173 million, up 94 percent from a year ago and up 57 percent for the full-year of 2017
    • Adjusted ROA1 and adjusted ROTE1 for the quarter were 0.79 percent and 8.48 percent, respectively
  • Total revenue increases 14 percent from prior year levels as both net interest income and noninterest income post double-digit gains
    • Quarterly net interest income increases 14 percent while the net interest margin (FTE) rises 44 basis points from prior year quarter
  • Noninterest expense growth well contained in 2017 at 3 percent
  • Positive operating leverage results in record quarterly operating income1 of $285 million, up 20 percent from prior year quarter and 21 percent for the full year
  • Strong momentum in second half of 2017 leads to growth in loans and deposits
    • Total loans of $61.7 billion up 2 percent from prior year and up 9 percent (annualized) on a linked quarter basis
    • Newly funded customer loans of $18.4 billion in 2017, up 27 percent from year ago levels
    • Total deposits of $69.3 billion rise 3 percent from a year ago and 12 percent (annualized) on a linked quarter basis
  • Key credit quality indicators show continued improvement throughout the year
    • Nonperforming loan ratio at 1.16 percent, down 47 basis points from year-end 2016 levels and 2 basis points from 3Q17
    • Energy portfolio nonaccrual loans drop 61 percent from year ago levels and 17 percent from 3Q17; portfolio now represents 4.5 percent of total loans
    • Allowance to loan ratio at 1.37 percent and nonperforming loan coverage ratio rises to 117 percent compared to 85 percent at the end of 2016

BBVA Compass corporate logo (PRNewsFoto/BBVA Compass)

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $52 million for the fourth quarter of 2017, a 42 percent decrease from the $89 million earned during the fourth quarter of 2016. Included in fourth quarter 2017 results is income tax expense of approximately $121 million related to the revaluation of net deferred tax assets at the lower statutory tax rate mandated by the Tax Cuts and Jobs Act (non-cash charge). Excluding the impact of this item, adjusted net income for the quarter was $173 million, a 33 percent increase from third quarter 2017 and a 94 percent increase from the fourth quarter 2016.

Net income for full-year 2017 totaled $461 million, an increase of 24 percent from the $372 million earned during the full-year of 2016. Excluding the impact of the non-cash charge, adjusted net income for the full-year 2017 was $582 million, up 57 percent. The following table summarizes the impact of new tax legislation on fourth quarter and full-year 2017 results.

Impact of Tax Cuts and Jobs Act











Dollars in thousands (unaudited)

































Full-Year






4Q17


4Q16


% Change



2017


2016


% Change

















NET INCOME:















   As reported


$  52,072


$  89,403


(42)

%


$    460,786


$    371,523


24

%

   Adjusted1


173,315


89,403


94



582,029


371,523


57

















ROA:















   As reported


0.24

%

0.40

%




0.53

%

0.41

%



   Adjusted1


0.79


0.40





0.67


0.41



















ROTE:1















   As reported


2.55

%

4.51

%




5.77

%

4.82

%



   Adjusted


8.48


4.51





7.28


4.82



















"The positive momentum we have built in our organization allowed us to report solid results for the year, and we finished the year on a strong note by delivering record operating income in the fourth quarter," said Onur Genç, president and CEO of BBVA Compass. "While the change in tax law required a revaluation of our net deferred tax assets, underlying trends in all of our businesses were very positive in the quarter. Revenue growth was robust and well-balanced as both net interest income and noninterest income posted double-digit gains over the year ago quarter. At the same time, balance sheet growth accelerated during the quarter both in terms of loans and deposits, while credit quality metrics improved throughout the year. As we enter 2018, our plan is to continue building on this momentum while also increasing our digital transformation efforts designed to increase our digital sales capabilities and improve the customer experience."

Total revenue for the quarter was $901 million, an increase of 14 percent from fourth quarter 2016 levels. For the full-year 2017, total revenue was $3.4 billion, an increase of 9 percent from $3.1 billion in 2016. Net interest income totaled $604 million, up 14 percent from the fourth  quarter of 2016 and 10 percent (annualized) on a linked quarter basis. The percent net interest margin in the fourth quarter was 3.22 percent, up 44 basis points from the fourth quarter of 2016 and 9 basis points from the third quarter of 2017. On a year-to-date basis, the percent net interest margin was 3.10 percent, an increase of 46 basis points compared to the same timeframe a year ago.

Noninterest income for the quarter totaled $297 million, an increase of 14 percent compared to the $261 million recorded in the fourth quarter of 2016. Positive performances were broad-based led by increases in corporate and correspondent investment sales, investment banking and advisory fees, retail investment sales and other income, which includes a sundry of miscellaneous items. While noninterest expense growth in the quarter was 11 percent, overall expense growth for the year was well-contained at 3 percent. As a result of this positive operating leverage, total operating income1 was a record $285 million in the quarter, an increase of 20 percent compared to the fourth quarter of 2016. For the full-year 2017, operating income1 totaled $1.1 billion, an increase of 21 percent compared to the full-year of 2016.

"While overall balance sheet growth was muted during the first half of the year, loan growth accelerated during the second half of the year, particularly during the fourth quarter," Genç noted. "During the year, we funded a record $18.4 billion of customer loans, an increase of 27 percent compared to the prior year, including $5.9 billion in the fourth quarter. Particularly noteworthy during the year was our 6th place ranking nationally in terms of the number of SBA 7(a) loans originated. While our commercial loan pipeline remains strong, continuing to build out our capabilities, particularly with respect to our consumer offerings in the digital space, remains a priority and we have been encouraged by the recent success of our Express Personal Loan product."

Total loans at the end of the fourth quarter of 2017 were $61.7 billion, a 9 percent (annualized) increase on a linked quarter basis and a 2 percent increase from the end of the fourth quarter of 2016. Total deposits at the end of the fourth quarter of 2017 were $69.3 billion, a 12 percent (annualized) increase on a linked quarter basis and a 3 percent increase at the end of the fourth quarter of 2016. Total noninterest bearing deposits increased 6 percent compared to a year ago and 10 percent on a linked quarter basis. Interest bearing deposits increased 1 percent compared to a year ago and 13 percent (annualized) on a linked quarter basis led by a 14 percent (annualized) increase in interest bearing transaction accounts.

"Maintaining strong credit quality standards is a top priority and during the year many of our key metrics showed improvement, a trend that continued in the fourth quarter," Genç noted. Nonperforming loans totaled $718 million at the end of the quarter, a decrease of $265 million since the end of the fourth quarter of 2016. Nonperforming loans in the primarily reserved-based energy portfolio declined $31 million during the quarter, bringing the year-over-year decrease to $236 million. Nonperforming loans as a percentage of total loans were 1.16 percent, down from 1.63 percent at year-end 2016. Net charge-offs as a percentage of average loans totaled 42 basis points in the quarter and 47 basis points for the full-year of 2017. The allowance for loan losses as a percentage of total loans ended the year at 1.37 percent while the coverage ratio of nonperforming loans rose to 117 percent compared to 85 percent at the end of 2016.

Total shareholder's equity at the end of the fourth quarter totaled $13.0 billion, a 2 percent increase from $12.8 billion at the end of the fourth quarter of 2016. The CET1 ratio rose to 11.80 percent2 at the end of the fourth quarter of 2017, up 31 basis points from the end of the fourth quarter of 2016. All of BBVA Compass' regulatory capital ratios significantly exceed the requirements under "well-capitalized" guidelines.

1 Adjusted net income, adjusted return on average assets and adjusted return on average tangible equity exclude the impact of the revaluation of net deferred tax assets mandated by the Tax Cuts and Jobs Act. These measures, along with operating income and average tangible equity are non-GAAP financial measures we believe aid in understanding certain areas of our performance. The calculation of these measures is included on the page titled Non-GAAP Reconciliation.
2 Regulatory ratios at December 31, 2017, are estimated.

About BBVA Compass

BBVA Compass is a Sunbelt-based financial institution that operates 649 branches, including 336 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 45 in Florida, 37 in Colorado and 18 in New Mexico. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). BBVA Compass has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 6th nationally in the total number of SBA loans originated in fiscal year 2017. Additional information about BBVA Compass can be found under the Investor Relations tab at bbvacompass.com, by following @BBVACompassNews on Twitter or visiting newsroom.bbvacompass.com.

About BBVA Group

BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States; and it is also the leading shareholder in Garanti, Turkey's biggest bank for market capitalization. Its diversified business is focused on high-growth markets and it relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. More information about BBVA Group can be found at bbva.com.

Forward-Looking Statements

Certain statements in this press release may contain forward-looking statements about BBVA Compass Bancshares, Inc. (the "Company") and its industry that involve substantial risks and uncertainties. The use of "we," "our" and similar terms refer to the Company. Statements other than statements of current or historical fact, including statements regarding our future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, and the impact of any laws or regulations applicable to the Company, constitute forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect the Company's views regarding future events and financial performance. Such statements are subject to risks, uncertainties, assumptions and other important factors, many of which may be beyond the Company's control, that could cause actual results to differ materially from anticipated results. If the Company's assumptions and estimates are incorrect, or if the Company becomes subject to significant limitations as the result of litigation or regulatory action, then the Company's actual results could vary materially from those expressed or implied in these forward-looking statements. The forward-looking statements are and will be based on the Company's then current views and assumptions regarding future events and speak only as of their dates made. The Company assumes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by securities law or regulation. For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Risk Factors" section of the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 1, 2017, as updated by our subsequent SEC filings.

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in thousands)






















Three Months Ended 
 December 31,


%


Years ended December 31,


%









2017


2016


 Change 


2017


2016


 Change 







EARNINGS SUMMARY



















Net interest income


$        603,545


$        531,752


14


$     2,330,167


$     2,067,681


13







Noninterest income [a]


297,169


261,053


14


1,042,942


1,026,232


2







Total revenue [a]


900,714


792,805


14


3,373,109


3,093,913


9







Investment securities gain (loss), net





3,033


30,037


(90)







Loss on prepayment of FHLB advances



(295)


(100)



(295)


(100)







Provision for loan losses


58,835


37,564


57


287,693


302,589


(5)







Goodwill impairment



59,901


(100)



59,901


(100)







Noninterest expense


615,828


554,169


11


2,311,587


2,243,621


3







Pretax income


226,051


140,876


60


776,862


517,544


50







Income tax expense


173,979


51,473


238


316,076


146,021


116







Net income


$          52,072


$          89,403


(42)


$        460,786


$        371,523


24







Adjusted net income [b]


$        173,315


$          89,403


94


$        582,029


$        371,523


57


























SELECTED RATIOS



















Return on average assets


0.24 %


0.40 %




0.53 %


0.41 %









Return on average assets- adjusted [b]


0.79


0.40




0.67


0.41









Return on average tangible equity [b]


2.55


4.51




5.77


4.82









Return on average tangible equity- adjusted [b]


8.48


4.51




7.28


4.82









Average common equity to average assets


14.82


14.39




14.63


13.82









Average loans to average total deposits


89.96


89.24




90.68


90.58









Common equity tier 1 capital (CET1) [c]


11.80


11.49




11.80


11.49









Tier I capital ratio [c]


12.15


11.85




12.15


11.85









Total capital ratio [c]


14.36


14.31




14.36


14.31









Leverage ratio [c]


9.98


9.46




9.98


9.46




































































Average for Three Months




Average for Year




Ending Balance





Ended December 31,


%


Ended December 31,


%


December 31,


%



2017


2016


 Change 


2017


2016


 Change 


2017


2016


 Change 

BALANCE SHEET HIGHLIGHTS


















Total loans


$  61,170,130


$  60,428,830


1


$  60,419,711


$  61,505,935


(2)


$  61,690,878


$  60,223,112


2

Total investment securities


13,555,910


12,800,050


6


13,231,647


12,607,031


5


13,729,880


12,868,272


7

Earning assets


77,204,217


78,691,897


(2)


77,745,063


81,335,489


(4)


78,359,040


77,989,196


Total assets


86,990,170


88,639,855


(2)


87,358,298


91,064,360


(4)


87,320,579


87,079,953


Noninterest bearing demand deposits


21,389,000


20,926,593


2


21,039,822


20,556,608


2


21,630,694


20,332,792


6

Interest bearing transaction accounts


33,059,701


32,835,469


1


32,783,151


32,789,385



33,743,887


33,518,871


1

Total transaction accounts


54,448,701


53,762,062


1


53,822,973


53,345,993


1


46,991,974


53,851,663


(13)

Total deposits


67,994,615


67,718,213



66,627,368


67,904,564


(2)


69,256,313


67,279,533


3

Shareholder's equity


13,150,577


12,982,707


1


13,035,797


12,818,572


2


13,013,310


12,750,707


2




















[a]  Excludes net gain on sales of investment securities and gain on prepayment of FHLB advances.

[b]  Non-GAAP measure that we believe aids in understanding certain areas of our performance.  The calculation of this measure is included on the page titled Non-GAAP Reconciliation.

[c]  Current period regulatory capital ratios are estimated.

 

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)








2017


2016



December 31


September 30


June 30


March 31


December 31

NONPERFORMING ASSETS











Nonaccrual loans [a]


$      658,865


$       666,812


$760,313


$825,988


$      921,042

Loans 90 days or more past due [b]


58,378


43,049


59,434


65,617


61,542

TDRs 90 days or more past due


751


963


969


1,185


589

Total nonperforming loans [a]


717,994


710,824


820,716


892,790


983,173

Other real estate owned, net (OREO)


17,278


22,012


22,965


25,113


21,112

Other repossessed assets


13,473


11,443


12,298


9,540


7,587

Total nonperforming assets


$      748,745


$       744,279


$855,979


$927,443


$   1,011,872












TDRs accruing and past due less than 90 days


$      127,482


$         95,521


$  97,088


$128,558


$      110,733












Total nonperforming loans as a % of loans


1.16 %


1.18 %


1.37 %


1.49 %


1.63 %

Total nonperforming assets as a % of total loans, other real estate, and other repossessed assets


1.21


1.23


1.43


1.55


1.68














Three Months Ended



2017


2016



December 31


September 30


June 30


March 31


December 31

ALLOWANCE FOR LOAN LOSSES











Balance at beginning of period


$      849,119


$       816,952


$834,106


$838,293


$      862,080

Net charge-offs (NCO)


65,194


71,267


62,439


84,326


61,351

Provision for loan losses


58,835


103,434


45,285


80,139


37,564

Balance at end of period


$      842,760


$       849,119


$816,952


$834,106


$      838,293












Allowance for loan losses as a % of total loans


1.37 %


1.41 %


1.36 %


1.40 %


1.40 %

Allowance for loan losses as a % of nonperforming loans [c]


117.38


119.46


99.54


93.43


85.26

Allowance for loan losses as a % of nonperforming assets [c]


112.56


114.09


95.44


89.94


82.85












Annualized as a % of average loans:











NCO - QTD


0.42


0.47


0.42


0.57


0.40

NCO - YTD


0.47


0.48


0.49


0.57


0.37


[a]  Includes loans held for sale.

[b]  Excludes loans classified as troubled debt restructurings (TDRs).

[c]  Includes loans held for sale that are on nonaccrual status.

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)































December 31, 2017


September 30, 2017


December 31, 2016



Recorded
Investment


Total
Commitment


Nonaccrual


Recorded
Investment


Total
Commitment


Nonaccrual


Recorded
Investment


Total
Commitment


Nonaccrual

ENERGY PORTFOLIO


Exploration and production


$    1,409,376


$   3,836,638


$   147,960


$    1,630,303


$   4,080,635


$   178,449


$    1,654,565


$   4,182,861


$   308,096

Midstream


973,087


3,005,131



976,845


3,011,822



1,199,844


3,230,513


11,298

Drilling oil and support services


178,338


370,153


2,328


179,636


373,389


2,350


263,770


467,908


66,811

Refineries and terminals


231,141


363,577


160


165,453


266,081


205


128,010


262,618


339

Total energy portfolio


$    2,791,942


$   7,575,499


$   150,448


$    2,952,237


$   7,731,927


$   181,004


$    3,246,189


$   8,143,900


$   386,544






















December 31, 2017




September 30, 2017




December 31, 2016





As a % of
Energy Loans


As a % of Total
Loans




As a % of
Energy Loans


As a % of Total
Loans




As a % of
Energy Loans


As a % of Total

Loans



ENERGY PORTFOLIO



















Exploration and production


50.5 %


2.3 %




55.2 %


2.7 %




51.0 %


2.7 %



Midstream


34.8


1.6




33.1


1.6




37.0


2.0



Drilling oil and support services


6.4


0.3




6.1


0.3




8.1


0.4



Refineries and terminals


8.3


0.4




5.6


0.3




3.9


0.2



Total energy portfolio


100.0 %


4.5 %




100.0 %


4.9 %




100.0 %


5.4 %



 

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Three Months Ended December 31,



2017


2016



Average
Balance


Income/
Expense


Yield/
Rate


Average
Balance


Income/
Expense


Yield/
Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$61,170,130


$661,873


4.29 %


$60,428,830


$575,195


3.79 %

Investment securities available for sale [a]


12,644,190


60,324


1.89


11,648,240


60,930


2.08

Investment securities held to maturity


1,056,906


9,508


3.57


1,219,537


9,650


3.15

Other earning assets [b] 


2,478,177


8,415


1.35


5,463,017


20,819


1.52

Total earning assets [a]


77,349,403


740,120


3.80


78,759,624


666,594


3.37

Allowance for loan losses


(853,546)






(866,885)





Unrealized gain (loss) on securities available for sale


(145,186)






(67,727)





Other assets


10,639,499






10,814,843





Total assets


$86,990,170






$88,639,855


















Liabilities and Shareholders' Equity













Interest bearing liabilities:













Interest bearing demand deposits


$  7,843,974


7,995


0.40


$  7,429,395


4,772


0.26

Savings and money market accounts


25,215,727


34,463


0.54


25,406,074


23,671


0.37

Certificates and other time deposits


13,545,914


45,558


1.33


13,865,231


45,353


1.30

Foreign office deposits





90,920


50


0.22

Total interest bearing deposits


46,605,615


88,016


0.75


46,791,620


73,846


0.63

FHLB and other borrowings


3,551,958


22,392


2.50


3,281,743


23,825


2.89

Federal funds purchased and securities sold under agreement to repurchase [b]


40,666


464


4.53


101,168


4,640


18.25

Other short-term borrowings


114,140


2,191


7.62


3,381,697


12,963


1.52

Total interest bearing liabilities


50,312,379


113,063


0.89


53,556,228


115,274


0.86

Noninterest bearing deposits


21,389,000






20,926,593





Other noninterest bearing liabilities


2,138,214






1,174,327





Total liabilities


73,839,593






75,657,148





Shareholder's equity


13,150,577






12,982,707





Total liabilities and shareholder's equity


$86,990,170






$88,639,855


















Net interest income/ net interest spread




627,057


2.91 %




551,320


2.51 %

Net yield on earning assets






3.22 %






2.78 %














Total taxable equivalent adjustment




23,512






19,568
















Net interest income




$603,545






$531,752











[a] Excludes adjustment for market valuation.







[b] Yield/rate reflects impact of balance sheet offsetting.






 

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)
















Years Ended December 31,



2017


2016



Average
Balance


Income/
Expense


Yield/
Rate


Average
Balance


Income/
Expense


Yield/
Rate

YIELD/RATE ANALYSIS













(Taxable Equivalent Basis)













Assets













Earning assets:













Loans


$60,419,711


$2,521,613


4.17 %


$61,505,935


$2,303,017


3.74 %

Investment securities available for sale [a]


12,224,405


224,807


1.84


11,356,093


192,183


1.69

Investment securities held to maturity


1,120,472


39,128


3.49


1,256,687


38,943


3.10

Other earning assets [b] 


4,093,705


67,635


1.65


7,222,523


74,755


1.04

Total earning assets [a]


77,858,293


2,853,183


3.66


81,341,238


2,608,898


3.21

Allowance for loan losses


(840,359)






(834,310)





Unrealized gain (loss) on securities available for sale


(113,230)






(5,749)





Other assets


10,453,594






10,563,181





Total assets


$87,358,298






$91,064,360


















Liabilities and Shareholders' Equity













Interest bearing liabilities:













Interest bearing demand deposits


$  7,858,504


27,206


0.35


$  7,042,165


16,639


0.24

Savings and money market accounts


24,924,647


107,106


0.43


25,747,220


99,567


0.39

Certificates and other time deposits


12,804,395


165,005


1.29


14,454,532


188,209


1.30

Foreign office deposits





104,039


210


0.20

Total interest bearing deposits


45,587,546


299,317


0.66


47,347,956


304,625


0.64

FHLB and other borrowings


3,973,465


93,814


2.36


4,226,225


82,744


1.96

Federal funds purchased and securities sold under agreement to repurchase [b]


58,624


16,926


28.87


451,980


21,165


4.68

Other short-term borrowings


1,703,738


26,424


1.55


3,778,752


54,244


1.44

Total interest bearing liabilities


51,323,373


436,481


0.85


55,804,913


462,778


0.83

Noninterest bearing deposits


21,039,822






20,556,608





Other noninterest bearing liabilities


1,959,306






1,884,267





Total liabilities


74,322,501






78,245,788





Shareholder's equity


13,035,797






12,818,572





Total liabilities and shareholder's equity


$87,358,298






$91,064,360


















Net interest income/ net interest spread




2,416,702


2.81 %




2,146,120


2.38 %

Net yield on earning assets






3.10 %






2.64 %














Total taxable equivalent adjustment




86,535






78,439
















Net interest income




$2,330,167






$2,067,681




[a] Excludes adjustment for market valuation.

[b] Yield/rate reflects impact of balance sheet offsetting.

 

 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)




















Year Ended




Three Months Ended



December 31,


%


2017


2016



2017


2016


 Change 


December 31


September 30


June 30


March 31


December 31

NONINTEREST INCOME

















Service charges on deposit accounts


$        222,110


$        214,294


4


$        56,070


$         55,953


$  54,919


$  55,168


$        55,901

Card and merchant processing fees


128,129


123,668


4


33,380


32,297


32,460


29,992


31,161

Retail investment sales


109,214


102,982


6


26,338


26,817


28,588


27,471


23,293

Investment banking and advisory fees


103,701


107,116


(3)


24,957


30,500


19,943


28,301


20,792

Money transfer income


101,509


104,592


(3)


24,101


24,881


27,330


25,197


28,632

Asset management fees


40,465


34,875


16


10,303


10,336


10,055


9,771


8,906

Corporate and correspondent investment sales


38,052


24,689


54


11,803


5,145


12,189


8,915


3,199

Mortgage banking income


14,356


21,496


(33)


4,720


3,450


3,316


2,870


16,086

Bank owned life insurance


17,108


17,243


(1)


4,397


4,322


4,220


4,169


4,202

Other


268,298


275,277


(3)


101,100


61,060


53,305


52,833


68,881



1,042,942


1,026,232


2


297,169


254,761


246,325


244,687


261,053

Investment securities gains, net


3,033


30,037


(90)



3,033




Loss on prepayment of FHLB and other borrowings



(295)


 NM 






(295)

Total noninterest income


$     1,045,975


$     1,055,974


(1)


$      297,169


$       257,794


$246,325


$244,687


$      260,758


















NONINTEREST EXPENSE

















Salaries, benefits and commissions


$     1,131,971


$     1,119,676


1


$      296,146


$       279,384


$288,426


$268,015


$      283,609

Professional services


263,490


242,206


9


76,068


64,775


64,840


57,807


63,810

Equipment


247,891


242,273


2


63,200


60,656


62,405


61,630


62,627

Net occupancy


166,693


160,997


4


41,125


42,227


41,240


42,101


40,116

Money transfer expense


65,790


67,474


(2)


15,721


15,938


17,807


16,324


17,426

Marketing


52,220


50,549


3


7,950


14,996


15,729


13,545


13,018

Communications


20,554


21,046


(2)


4,970


5,084


5,281


5,219


5,406

Other


362,978


339,400


7


110,648


90,902


76,757


84,671


68,157



2,311,587


2,243,621


3


615,828


573,962


572,485


549,312


554,169

Goodwill impairment



59,901


(100)






59,901

Total noninterest expense


$     2,311,587


$     2,303,522



$      615,828


$       573,962


$572,485


$549,312


$      614,070


















NM = Not meaningful














 

BBVA COMPASS BANCSHARES, INC.

(Unaudited)

(Dollars in Thousands)












Three Months Ended December 31,


Years Ended December 31,



2017


2016


2017


2016

NON-GAAP RECONCILIATION


















Computation of Operating Income:









Net interest income (GAAP)


$     603,545


$     531,752


$  2,330,167


$  2,067,681

Plus: noninterest income (GAAP)


297,169


260,758


1,045,975


1,055,974

Less: noninterest expense (GAAP)


615,828


614,070


2,311,587


2,303,522

Plus: goodwill impairment (GAAP)



59,901



59,901

Operating income (non-GAAP)


$     284,886


$     238,341


$  1,064,555


$     880,034










Computation of Average Tangible Equity:









Total stockholder's equity (average) (GAAP)


$13,150,577


$12,982,707


$13,035,797


$12,818,572

Less: Goodwill and other intangibles (average) (GAAP)


5,039,014


5,101,494


5,043,805


5,107,002

Average tangible equity (non-GAAP) [B]


$  8,111,563


$  7,881,213


$  7,991,992


$  7,711,570

Net income (GAAP) [A]


$       52,072


$       89,403


$     460,786


$     371,523

Return on average tangible equity (non-GAAP) ([A]/[B], annualized)


2.55 %


4.51 %


5.77 %


4.82 %










Computation of Adjusted Net Income, Return on Average Assets and Return on Average Tangible Equity:



Net income (GAAP)


$       52,072


$       89,403


$     460,786


$     371,523

Plus: Revaluation of net deferred tax assets (GAAP)


121,243



121,243


Adjusted net income (non-GAAP) [C]


$     173,315


$       89,403


$     582,029


$     371,523

Average assets (GAAP) [D]


$86,990,170


$88,639,855


$87,358,298


$91,064,360

Return on average assets - adjusted (non-GAAP) ([C]/[D], annualized)


0.79 %


0.40 %


0.67 %


0.41 %

Return on average tangible equity - adjusted (non-GAAP) ([C]/[B], annualized)


8.48


4.51


7.28


4.82

 

BBVA COMPASS BANCSHARES, INC.

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION (Unaudited)

(Dollars in Thousands)


















At or Quarter Ended December 31, 2017


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)





Commercial, financial and agricultural

$                       14,804


$                         3,753


$              18,136


$    310,059


$            28,203


$     25,374,994


$     25,749,949


$              13,320

Real estate – construction

12,293


70


1,560


5,381


101


2,254,134


2,273,539


(115)

Commercial real estate –  mortgage

10,473


3,270


927


111,982


4,155


11,593,351


11,724,158


417

Residential real estate – mortgage

69,474


34,440


8,572


173,843


64,898


13,014,520


13,365,747


290

Equity lines of credit

10,956


7,556


2,259


34,021


237


2,598,076


2,653,105


871

Equity loans

4,170


657


995


11,559


30,105


315,778


363,264


87

Credit card

6,710


4,804


11,929


-


-


616,074


639,517


9,048

Consumer – direct

19,766


7,020


6,712


2,425


534


1,653,926


1,690,383


19,551

Consumer – indirect

92,017


26,460


7,288


9,595


-


3,028,746


3,164,106


21,725

Covered loans

-


-


-


-


-


-


-


-

Total loans

$                     240,663


$                       88,030


$              58,378


$    658,865


$         128,233


$     60,449,599


$     61,623,768


$              65,194

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$            67,110


$             67,110


$                       -


















At or Quarter Ended September 30, 2017


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)





Commercial, financial and agricultural

$                    51,581


$                      6,351


$             6,072


$ 324,071


$           1,259


$  24,702,608


$ 25,091,942


$          14,695

Real estate – construction

661


94


2,955


1,877


106


2,241,451


2,247,144


(29)

Commercial real estate –  mortgage

21,324


1,089


3,686


108,040


4,645


11,203,594


11,342,378


7,707

Residential real estate – mortgage

57,582


32,606


2,558


175,490


59,086


13,071,181


13,398,503


1,717

Equity lines of credit

11,118


4,824


2,179


34,416


237


2,564,538


2,617,312


179

Equity loans

3,470


1,798


840


11,305


30,574


335,389


383,376


(7)

Credit card

6,832


4,777


10,692


-


-


568,674


590,975


10,591

Consumer – direct

17,563


6,796


5,209


2,746


577


1,571,505


1,604,396


18,281

Consumer – indirect

81,534


23,070


8,858


8,867


-


2,916,849


3,039,178


18,133

Covered loans

-


-


-


-


-


-


-


-

Total loans

$                 251,665


$                    81,405


$           43,049


$ 666,812


$        96,484


$  59,175,789


$ 60,315,204


$          71,267

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$          77,783


$         77,783


$                       -


















At or Quarter Ended June 30, 2017


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)





Commercial, financial and agricultural

$                       32,398


$                         6,532


$                 4,770


$    448,565


$                 766


$     24,117,488


$     24,610,519


$              20,047

Real estate – construction

4,829


474


2,251


1,993


110


2,279,166


2,288,823


(797)

Commercial real estate –  mortgage

8,966


10,138


3,617


117,893


4,725


11,375,494


11,520,833


(1,386)

Residential real estate – mortgage

54,911


31,227


3,043


141,482


59,490


12,789,171


13,079,324


1,404

Equity lines of credit

8,560


4,933


1,630


29,347


236


2,535,194


2,579,900


795

Equity loans

4,109


1,202


320


11,015


32,110


346,093


394,849


209

Credit card

5,446


4,015


11,738


-


-


555,621


576,820


10,678

Consumer – direct

16,134


6,032


4,187


706


620


1,419,967


1,447,646


16,899

Consumer – indirect

75,605


18,189


5,681


8,964


-


2,952,843


3,061,282


14,590

Covered loans

3,438


308


22,197


348


-


294,873


321,164


-

Total loans

$                     214,396


$                       83,050


$              59,434


$    760,313


$            98,057


$     58,665,910


$     59,881,160


$              62,439

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$             74,558


$             74,558


$                       -


















At or Quarter Ended March 31, 2017


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)





Commercial, financial and agricultural

$                       22,472


$                       11,804


$                 4,405


$    540,407


$            31,644


$     24,049,936


$     24,660,668


$              39,411

Real estate – construction

487


25


3,640


1,028


114


2,222,111


2,227,405


(57)

Commercial real estate –  mortgage

13,872


1,226


4,602


89,908


4,821


11,284,392


11,398,821


(741)

Residential real estate – mortgage

61,234


22,337


2,653


140,342


58,867


12,832,343


13,117,776


1,195

Equity lines of credit

9,144


3,619


1,478


32,675


-


2,513,579


2,560,495


1,166

Equity loans

5,105


1,592


376


12,626


33,635


367,028


420,362


848

Credit card

6,262


4,719


12,453


-


-


546,877


570,311


9,818

Consumer – direct

12,025


4,866


4,874


637


662


1,306,178


1,329,242


16,818

Consumer – indirect

68,851


16,161


7,463


7,955


-


2,978,318


3,078,748


15,899

Covered loans

6,448


3,479


23,673


410


-


307,929


341,939


(31)

Total loans

$                     205,900


$                       69,828


$              65,617


$    825,988


$         129,743


$     58,408,691


$     59,705,767


$              84,326

Loans held for sale

$                                -


$                                -


$                        -


$                -


$                     -


$             74,741


$             74,741


$                       -


















At or Quarter Ended December 31, 2016


30-59 Days Past Due


60-89 Days Past Due


90 Days or More
Past Due


Nonaccrual


Accruing TDRs


Not Past Due or
Impaired


Total


Net Charge Offs
(Recoveries)





Commercial, financial and agricultural

$                       23,788


$                         6,581


$                 2,891


$    596,454


$              8,726


$     24,483,562


$     25,122,002


$              14,413

Real estate – construction

918


50


2,007


1,239


2,393


2,118,709


2,125,316


(383)

Commercial real estate –  mortgage

3,791


3,474


-


71,921


4,860


11,126,614


11,210,660


280

Residential real estate – mortgage

57,359


28,450


3,356


140,303


59,893


12,970,633


13,259,994


1,044

Equity lines of credit

7,922


4,583


2,950


33,453


-


2,494,870


2,543,778


641

Equity loans

5,615


1,843


467


13,635


34,746


389,403


445,709


512

Credit card

6,411


5,042


10,954


-


-


582,474


604,881


9,680

Consumer – direct

13,338


4,563


4,482


789


704


1,230,765


1,254,641


15,343

Consumer – indirect

85,198


22,833


7,197


5,926


-


3,013,794


3,134,948


19,902

Covered loans

7,311


1,351


27,238


730


-


322,704


359,334


(81)

Total loans

$                     211,651


$                       78,770


$              61,542


$    864,450


$         111,322


$     58,733,528


$     60,061,263


$              61,351

Loans held for sale

$                                -


$                                -


$                        -


$       56,592


$                     -


$           105,257


$          161,849


$                       -

 

BBVA COMPASS BANCSHARES, INC.

BALANCE SHEET (Unaudited)

(Dollars in Thousands)












2017


2016


December 31


September 30


June 30


March 31


December 31

Assets:










Cash and due from banks

$      1,313,022


$      1,145,745


$      1,073,646


$      1,093,797


$      1,284,261

Interest bearing funds with the Federal Reserve

2,683,769


2,400,533


2,120,285


2,669,135


1,830,078

Federal funds sold, securities purchased under agreements to resell and interest bearing deposits

86,035


188,380


182,215


197,000


137,447

Cash and cash equivalents

4,082,826


3,734,658


3,376,146


3,959,932


3,251,786

Trading account assets

220,496


572,104


2,651,083


2,892,254


3,144,600

Investment securities available for sale

12,683,787


12,268,309


12,142,844


11,846,618


11,665,055

Investment securities held to maturity

1,046,093


1,077,372


1,143,171


1,158,785


1,203,217

Loans held for sale

67,110


77,783


74,558


74,741


161,849

Loans

61,623,768


60,315,204


59,881,160


59,705,767


60,061,263

Allowance for loan losses

(842,760)


(849,119)


(816,952)


(834,106)


(838,293)

Net loans

60,781,008


59,466,085


59,064,208


58,871,661


59,222,970

Premises and equipment, net

1,214,874


1,226,747


1,253,516


1,273,226


1,300,054

Bank owned life insurance

722,596


720,693


718,938


715,883


711,939

Goodwill

4,983,296


4,983,296


4,983,296


4,983,296


4,983,296

Other assets

1,518,493


1,556,613


1,596,159


1,532,837


1,435,187

Total assets

$    87,320,579


$    85,683,660


$    87,003,919


$    87,309,233


$    87,079,953

Liabilities:










Deposits:










Noninterest bearing

$    21,630,694


$    21,094,235


$    21,000,630


$    21,476,890


$    20,332,792

Interest bearing

47,625,619


46,119,332


44,616,750


46,052,748


46,946,741

Total deposits

69,256,313


67,213,567


65,617,380


67,529,638


67,279,533

FHLB and other borrowings

3,959,930


3,956,041


4,789,494


2,993,222


3,001,551

Federal funds purchased and securities sold under agreements to repurchase

19,591


44,761


31,619


71,559


39,052

Other short-term borrowings

17,996


327,539


2,435,260


2,642,539


2,802,977

Accrued expenses and other liabilities

1,053,439


1,025,849


1,140,536


1,186,776


1,206,133

Total liabilities

74,307,269


72,567,757


74,014,289


74,423,734


74,329,246

Shareholder's Equity:










Preferred Stock

229,475


229,475


229,475


229,475


229,475

Common stock — $0.01 par value

2,230


2,230


2,230


2,230


2,230

Surplus

14,818,608


14,912,412


14,916,198


14,982,125


14,985,673

Retained deficit

(1,868,659)


(1,920,184)


(2,050,051)


(2,207,060)


(2,327,440)

Accumulated other comprehensive loss

(197,405)


(137,583)


(137,131)


(150,781)


(168,252)

Total BBVA Compass Bancshares, Inc. shareholder's equity

12,984,249


13,086,350


12,960,721


12,855,989


12,721,686

Noncontrolling interests

29,061


29,553


28,909


29,510


29,021

Total shareholder's equity

13,013,310


13,115,903


12,989,630


12,885,499


12,750,707

Total liabilities and shareholder's equity

$    87,320,579


$    85,683,660


$    87,003,919


$    87,309,233


$    87,079,953

 

 

BBVA COMPASS BANCSHARES, INC.

INCOME STATEMENT (Unaudited)

(Dollars in Thousands)












Three Months Ended


2017


2016


December 31


September 30


June 30


March 31


December 31

Interest income:










Interest and fees on loans

$      641,322


$       623,884


$    607,375


$    574,712


$      558,680

Interest on investment securities available for sale

60,317


53,930


55,590


54,878


60,868

Interest on investment securities held to maturity

6,555


6,994


6,821


6,639


6,664

Interest on federal funds sold, securities purchased under agreements to resell

and interest bearing deposits










7,409


11,557


12,049


9,262


7,664

Interest on trading account assets

1,005


6,247


9,805


10,297


13,150

Total interest income

716,608


702,612


691,640


655,788


647,026

Interest expense:










Interest on deposits

88,016


75,083


65,914


70,304


73,846

Interest on FHLB and other borrowings

22,392


29,904


22,450


19,068


23,825

Interest on federal funds purchased and securities sold under agreements to repurchase

464


4,623


6,942


4,897


4,640

Interest on other short-term borrowings

2,191


3,641


10,506


10,086


12,963

Total interest expense

113,063


113,251


105,812


104,355


115,274

Net interest income

603,545


589,361


585,828


551,433


531,752

Provision for loan losses

58,835


103,434


45,285


80,139


37,564

Net interest income after provision for loan losses

544,710


485,927


540,543


471,294


494,188

Noninterest income:










Service charges on deposit accounts

56,070


55,953


54,919


55,168


55,901

Card and merchant processing fees

33,380


32,297


32,460


29,992


31,161

Retail investment sales

26,338


26,817


28,588


27,471


23,293

Investment banking and advisory fees

24,957


30,500


19,943


28,301


20,792

Money transfer income

24,101


24,881


27,330


25,197


28,632

Asset management fees

10,303


10,336


10,055


9,771


8,906

Corporate and correspondent investment sales

11,803


5,145


12,189


8,915


3,199

Mortgage banking income

4,720


3,450


3,316


2,870


16,086

Bank owned life insurance

4,397


4,322


4,220


4,169


4,202

Investment securities gains, net


3,033




Loss on prepayment of FHLB and other borrowings





(295)

Other

101,100


61,060


53,305


52,833


68,881

Total noninterest income

297,169


257,794


246,325


244,687


260,758

Noninterest expense:










Salaries, benefits and commissions

296,146


279,384


288,426


268,015


283,609

Professional services

76,068


64,775


64,840


57,807


63,810

Equipment

63,200


60,656


62,405


61,630


62,627

Net occupancy

41,125


42,227


41,240


42,101


40,116

Money transfer expense

15,721


15,938


17,807


16,324


17,426

Marketing

7,950


14,996


15,729


13,545


13,018

Communications

4,970


5,084


5,281


5,219


5,406

Goodwill impairment





59,901

Other

110,648


90,902


76,757


84,671


68,157

Total noninterest expense

615,828


573,962


572,485


549,312


614,070

Net income before income tax expense

226,051


169,759


214,383


166,669


140,876

Income tax expense

173,979


39,308


56,943


45,846


51,473

Net income

52,072


130,451


157,440


120,823


89,403

Less: net income attributable to noncontrolling interests

547


584


431


443


441

Net income attributable to BBVA Compass Bancshares, Inc.

$        51,525


$       129,867


$    157,009


$    120,380


$        88,962

 

SOURCE BBVA Compass

For further information: Christina Anderson, External Communications, Tel. 205 524 5214, [email protected]; Ed Bilek, Investor Relations, Tel. 205 297 3331, [email protected]


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